What is a company's market share?
A.
The company's percentage of increase in sales over the last year
B.
The percentage of the market that the company shares with its competitors
C.
The total size of the market for a product or service
D.
The percentage of the total market for the product or service that belongs to the company

Question

08-06-2017
Business

contestada

What is a company's market share?
A.
The company's percentage of increase in sales over the last year
B.
The percentage of the market that the company shares with its competitors
C.
The total size of the market for a product or service
D.
The percentage of the total market for the product or service that belongs to the company

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andriansp andriansp · Answer 1 · 2018-10-24T05:11:12+02:00

The answer is: D. The percentage of the total market for the product or service that belongs to the company

For example let's say that there is a total of 100,000 potential consumers for product X. From that 100,000, your company able to create product X that is bought by 10,000 customers. From this number, we can say that your company had 10% market share in product X market.

Market share is usually counted in order to know the popularity of your product compared to the competitors in similar market.

debmagnani debmagnani · Answer 2 · 2019-11-03T22:27:55+01:00

Answer:

D. The percentage of the total market for the product or service that belongs to the company

Explanation:

A company's market share is its sale measured as a percentage of an industry's total revenue.

You can determine a company's market share by dividing its total sales or revenue by total industry sales over a specific fiscal period.

This metric is used to give you a general idea of how big a company is relative to its market and competitors.

There are several types of market share, which can be of value or volume:

Value market share is based on a company's total share of total segment sales;
Volumes refer to the actual number of units a company sold in relation to the total units sold in the market.

The value-volume market share equation is not generally linear: a unit may have high values and low numbers, which means that the value market share may be high but the volume share may be low.